All these plans do is force banks to pave the way for the federal government to nationalize their assets without notice.
logis on August 10, 2012 at 5:27 PM

Capital ratios are up substantially since the crisis, and leverage down. A lot of banks are complaining that the requirements are too high, in fact. I think if we wanted to nationalize the banks, we could have done that in 2009. It would have been pretty easy, since most of them had to take whatever terms Bernanke/Geithner/Obama imposed or do a Lehman Brothers.
urban elitist on August 10, 2012 at 5:35 PM

I have no way of guessing what your personal plans are, but you and I are most definitely not the “we” I was talking about.

Of course a nationalization like you’re describing could not have happened in 2009, or today, because the banks that actually HAD all those creamy delicious assets wouldn’t have agreed to any “terms.” Obviously the government has no use for insolvent banks, and all the solvent banks want to KEEP those assets, and use them to beat the pants off all their government-drone-controlled competitors.

Whenever one of these “fundamental transformations” finally occurs, consent is never an issue. All that matters is the speed at which assets can be confiscated by a bunch of thugs how have no real clue what to do with those assets. And that is the only thing these “emergency plans” are designed to affect.

]]>By: paratisihttp://hotair.com/archives/2012/08/10/even-more-exciting-up-and-coming-financial-regulation-big-banks-now-required-to-produce-emergency-plans/comment-page-1/#comment-6121476
Fri, 10 Aug 2012 22:25:06 +0000http://hotair.com/?p=211526#comment-6121476Well, Hate to state the obvious here but, it’s more than past time to Break Up the Banks and let competition get banking back to a normal industry and that way we won’t here the same ridiculous “TOO BIG TO FAIL” song and dance again.

God Bless America!

]]>By: Spots the Doghttp://hotair.com/archives/2012/08/10/even-more-exciting-up-and-coming-financial-regulation-big-banks-now-required-to-produce-emergency-plans/comment-page-1/#comment-6121431
Fri, 10 Aug 2012 22:17:37 +0000http://hotair.com/?p=211526#comment-6121431Let us please “cut to the chase”. I have been a commercial banker since 1971 ( why yes, actually I am ancient).

Everyone needs to understand that the ultimate goal is the control and nationalization of the banking industry.

Pay attention, please. They will kill community banks as fast as they can.

]]>By: Wolfmoonhttp://hotair.com/archives/2012/08/10/even-more-exciting-up-and-coming-financial-regulation-big-banks-now-required-to-produce-emergency-plans/comment-page-1/#comment-6121292
Fri, 10 Aug 2012 21:45:58 +0000http://hotair.com/?p=211526#comment-6121292The ONLY reason the libs want the big banks to come up with a plan for their recovery is so the libs will know how to counter it in order to make NEW bail out plans, but next time around the banks will become government property.

Meanwhile, since the doj won’t bust goldman, obamacommie now has his hand stuck out waiting for that donation.

Of course properly collateralized banks don’t need a default plan. That doesn’t make the tiniest bit of sense. And nothing about these “emergency plans” help the banks weather any financial crisis. In fact, just the opposite.

All these plans do is force banks to pave the way for the federal government to nationalize their assets without notice.

logis on August 10, 2012 at 5:27 PM

Capital ratios are up substantially since the crisis, and leverage down. A lot of banks are complaining that the requirements are too high, in fact.

I think if we wanted to nationalize the banks, we could have done that in 2009. It would have been pretty easy, since most of them had to take whatever terms Bernanke/Geithner/Obama imposed or do a Lehman Brothers.

What do you think this is all about? This IS the federal government’s emergency plan.

Of course properly collateralized banks don’t need a default plan. That doesn’t make the tiniest bit of sense. And nothing about these “emergency plans” help the banks weather any financial crisis. In fact, just the opposite.

All these plans do is force banks to pave the way for the federal government to nationalize their assets without notice.

Take your own advice…you think their is only “traditional” banks that make loans? Have checking accounts? Are involved in mortgages? Really, that’s the limit of your expertise…this is where the “tee hee” comes in as people snicker at your faux arrogance.

right2bright on August 10, 2012 at 5:03 PM

I realize that. In fact, a large percentage of the loans were in the run-up to the crisis were originated by non-bank mortgage companies (which were not subject to CRA and other pressure,but that’s another argument).

But you know what? Not a single one of them was originated by Goldman.

Erika may have gotten the part about Goldman Sachs making subprime (or any) mortgages wrong. But they were BIG players in the subprime-mortgage-backed securities market.

Bitter Clinger on August 10, 2012 at 5:08 PM

Very different things. For one thing, the was no federal pressure to get involved in that market. Banks were crawling all over each other to get into the MBS market because they believed their own BS (“we’ve eliminated risk”). They thought it was free money.

If Erika doesn’t recognize that, she’s too ill-informed to be taken seriously on this issue.

The last two major investment banks in the US have changed their status to become bank holding companies, allowing them to take deposits from investors.
The changes should enable Goldman Sachs and Morgan Stanley to raise more funds by opening commercial banks.

You are welcome, the education is free…take it and consider it a gift…

right2bright on August 10, 2012 at 5:07 PM

but they haven’t done it yet, have they? And they certainly hadn’t done it before the sub-prime debacle.

And when are these quotes from? I think Goldman — along with a lot of other institutions, like GM’s credit division and GE Capital — made that switch in ’08 or early ’09, so they could get access to the Fed’s credit window during the crisis.

Goldman was under investigation for creating and selling “synthetic” mortgage-backed derivatives which tracked the performance of mortgages originated and other institutions and individuals. The neither originated the mortgages that the derivatives were based on and in many cases never even held the securities that were actually created from the mortgages — they ran a little casino and allegedly stacked the deck without telling some of the players. They settled a civil case with the SEC for $550 million in one instance, but the standard of proof is higher for a criminal complaint, hence the Justice Dpartment not pulling the trigger.

The last two major investment banks in the US have changed their status to become bank holding companies, allowing them to take deposits from investors.
The changes should enable Goldman Sachs and Morgan Stanley to raise more funds by opening commercial banks.

And today the Wall Street Journal reported Goldman could soon become an Internet banking start-up.

You are welcome, the education is free…take it and consider it a gift…

I’m surprised Obama hasn’t pressured Bernanke to launch QE3, as a matter of fact. While it would make gas prices fly to the moon, it would probably also help slow down the pace of job losses for a little bit longer.

Doomberg on August 10, 2012 at 4:55 PM

Probably because a spike in gas prices could harm him far more politically than any fluctuations in job losses between now and November.

]]>By: timberlinehttp://hotair.com/archives/2012/08/10/even-more-exciting-up-and-coming-financial-regulation-big-banks-now-required-to-produce-emergency-plans/comment-page-1/#comment-6121123
Fri, 10 Aug 2012 21:06:31 +0000http://hotair.com/?p=211526#comment-6121123Rush was blurbing on this in his radio show today. Something like the banks were told by the Fed that they need to prepare for rough times and be prepared not to seek another taxpayer bailout.
]]>By: right2brighthttp://hotair.com/archives/2012/08/10/even-more-exciting-up-and-coming-financial-regulation-big-banks-now-required-to-produce-emergency-plans/comment-page-1/#comment-6121116
Fri, 10 Aug 2012 21:03:18 +0000http://hotair.com/?p=211526#comment-6121116

Try again.

urban elitist on August 10, 2012 at 4:55 PM

Take your own advice…you think their is only “traditional” banks that make loans? Have checking accounts? Are involved in mortgages? Really, that’s the limit of your expertise…this is where the “tee hee” comes in as people snicker at your faux arrogance.

]]>By: right2brighthttp://hotair.com/archives/2012/08/10/even-more-exciting-up-and-coming-financial-regulation-big-banks-now-required-to-produce-emergency-plans/comment-page-1/#comment-6121108
Fri, 10 Aug 2012 21:00:33 +0000http://hotair.com/?p=211526#comment-6121108Gov. interference costs us money…China does not beat us because of wages, it’s because their gov. gets out of the way of business.

I would bet no single person could name all of the gov. restrictions that are placed on a bank. I would be not one person knows of the fees & licensing a bank has to have, I would bet no one single person knows all of the regulations imposed on them.
Anytime you have something so complex that even a highly trained, educated professional cannot explain, define, understand, the complexity was caused by the government…and guess who pays for that?

]]>By: Fleurieshttp://hotair.com/archives/2012/08/10/even-more-exciting-up-and-coming-financial-regulation-big-banks-now-required-to-produce-emergency-plans/comment-page-1/#comment-6121102
Fri, 10 Aug 2012 20:59:14 +0000http://hotair.com/?p=211526#comment-6121102I dont know why this popped out just now, but I have read about this for a little while now, and it is more suspicious that the facts just popped out and now they used to be secret.

I don’t think anyone has a problem with banks having a contingency plan on too big to fail…on the surface, I agree with this, but I wonder if the devil is in the details.

You just wonder what strings are attached to this by the current administration…the last thing we want is nationalized banks.

And, Goldman Sachs, a liberal leaning bank where Corzine came from, but still we don’t have the facts to know who to blame on the last collapse, and it is the current administration that was blaming banks and subprime loans…if you recall the red lining threats and the Community re investment act and the shenanigans at Freddy and Fanny and all the money that liberal politicians ran away with while making more and more mortgage loans has NOT yet been punished, or put to an end.

The first thing to find out is the truth about what happened, before you can cast any blame.